ICBA Urges Kansas City Fed to Reassess Kraken's Limited-Purpose Fed Account

CoinFeed June 22 news, according to CryptoSlate, the community banking organization ICBA has sent a letter to the Kansas City Fed, requesting a reassessment of Kraken Financial's compliance before its one-year limited-purpose Fed account expires, and considering further restrictions or termination. ICBA believes the account has not adequately addressed anti-money laundering and fraud risks associated with crypto-linked entities, citing FBI data that there were approximately 13,500 crypto ATM-related complaints in 2025, with losses of about $389 million. Kraken obtained the account in March this year, granting access to the Fed's core payment system Fedwire. The Kansas City Fed has discretion over the account's conditions and renewal, and has not yet initiated termination procedures.